Why Price Gouging Is Good

When a natural disaster strikes, it is almost guaranteed that there will be yet another uproar about price gouging. Media pundits will take to the airwaves to virtue signal against people who would dare to exploit disaster victims. Government officials will use the crisis to score political points by portraying themselves as defenders of the common people against greedy capitalists. But how accurately does this reflect reality? Let us explore the nature of price gouging to see the economics of such a situation and explain the behavior of journalists and state agents.

Economic Forces

In order to intelligently approach the concept of price gouging, one must first define it. Price gouging is a sudden, sharp increase in prices that occurs in response to a disaster or other civil emergency. Though this defines the act well, it does not explain the mechanisms behind it. When a disaster approaches, there are certain goods that people wish to acquire in greater quantities than normal, such as clean drinking water, non-perishable foods, wooden boards for protecting windows, and so on. If supply is held constant, then this sudden increase in demand for such goods will produce a sudden increase in their prices.

If left unhindered by the state, this upward pressure on prices will produce important benefits. First, it serves as a signal to producers and distributors of those goods that more supply is needed. The producers and distributors thus learn where their goods are most urgently in demand, allowing them to engage in mutually beneficial transactions with disaster victims. This is how free markets are supposed to function in order to meet the needs of customers.

Second, price gouging encourages proactive preparations. A potential business model for a firm is to invest in equipment that allows it to operate when a disaster would otherwise force it to close, and use the proceeds from price gouging to amortize the cost of the equipment. This helps consumers by allowing them to purchase goods at higher prices rather than be left without essential items during a crisis.

Third, price gouging provides an important benefit by conserving the fixed amount of resources which are present before more deliveries can be made to the disaster area. The higher cost of scarce goods disincentivizes people from buying up supplies that other people need, thus helping to keep the items in stock. This keeps scarce resources from being wasted on marginal uses, directing them toward their most valued uses and the people who most need them instead.

Markets And Malice

Unfortunately, not every instance of price gouging is so benevolent. Business owners who seek to exploit vulnerable people in order to make money do exist. But engaging in such behavior in a free market produces a short-term gain followed by a long-term loss. In a pure capitalist environment, reputation is everything for a business. Whatever profits may come from gouging disaster victims in the present will be more than outweighed by the sales that one will lose in the future because of the damage that this does to one’s brand. After all, most people would view such behavior as adding insult to injury and vote against it with their wallets. Though it is impossible to accurately count sales that do not happen, to dismiss this effect as nonexistent is to commit the broken window fallacy.

Enter The State

Most people are economically illiterate, so they tend to focus on the malevolent type of price gouging and be unaware of the benevolent type. In a democratic state, this has predictable results. Politicians and other government agents will frown upon price gouging and seek to punish anyone who they believe to be engaging in it. But it can be difficult to distinguish the natural effects of demand spikes and limited supplies upon price from the efforts of greedy exploiters of disaster victims, especially for government officials who are too far removed from the disaster area to be intimately familiar with the economic dynamics there. Thus, all price gouging is suppressed by the state, and while this may protect a few people from exploitation, it causes more harm than good by disrupting the market signals which would have informed producers and distributors that their goods need to be sent to the disaster area. The end result is that scarce goods are depleted and not replaced, leading people to once more blame the market for failing them when the actual cause of their shortage was a government failure.

Suppression of price gouging has several deleterious effects. First, by placing price controls on goods, the state deprives entrepreneurs of the profit motive to bring additional supply to the disaster area. Without state inteference, people who live outside of the disaster area and are willing to travel there in order to bring supplies could charge enough for their goods to recover their travel costs and be compensated for the inconvenience of spending time in a disaster area, all while making enough profit to make such a venture more attractive than other economic opportunities. Price gouging laws remove such action, leaving only state agencies and altruistic private groups to provide aid. Note that like all government regulations, price gouging laws are subject to regulatory capture by the largest businesses.

Second, removing the incentive for proactive preparations makes untenable the business model for operating during a disaster described above. Third, removing the conservation effect of price gouging forces business owners to sell goods below their market-clearing price. This incentivizes hoarders to buy more than they need and scalpers to buy goods for resale. The existence of scalpers also makes desired goods more difficult to find, as resellers will be more difficult to locate than established stores. Thus, laws against price gouging do not eliminate the practice, but rather shift it from primary markets to secondary markets and cause a different set of people to profit. Taken together, these effects result in artificial scarcity that makes conditions in a disaster area even worse.

A Pair of Razors

Given the clear case in favor of price gouging, one may wonder why so many people in positions of political power rail against it. Reece’s razor suggests that we look for the most cynical explanation when attempting to determine a motive for state policy. No other possibility prioritizes the self-interest of politicians and their minions over the lives and properties of citizens quite like the idea that government officials want to suppress the natural response of markets in order to make government disaster relief agencies look effective and necessary, thus justifying their existence and expansion, so Reece’s razor selects it.

However, it is not in the rational self-interest of elected officials to increase the suffering of disaster victims who are capable of removing them from office in the next election. A better explanation is offered by Hanlon’s razor, which says that one should not attribute to malice what can be explained by stupidity. In this view, government officials are not trying to increase the harm done during a disaster; they simply know no better because they are just as economically illiterate as the electorate, if not more so. This razor is a better fit for the available logic and evidence.

Conclusion

It is clear that price gouging has an important economic role in ensuring that goods both go to those who need them most and remain available in times of emergency. Market prices are important signals that tell producers and distributors where their goods are most urgently needed. When the state interferes with this process by imposing price controls, it turns off the signal and incentives for market actors to send aid, encourages hoarding and scalping, and discourages conservation and farsightedness. These effects mean that laws against price gouging harm the very people that they are ostensibly supposed to help. Therefore, price gouging should not be punished by the state or demonized by the press.

How To Rein In Censorious Technology Giants

Over the past decade, the large technology companies of Silicon Valley have transitioned from a mindset of attempting to make government censorship impossible to a mindset of attempting to make government censorship unnecessary. Those with views which are in opposition to the progressive narrative have increasingly found their posts removed and accounts suspended on the social media platforms created by these companies. Though this is not a new problem, it has escalated since the firing of James Damore from Google and the unrest in Charlottesville. Those who are not part of the progressive movement, such as conservatives, libertarians, reactionaries, and the alt-right are increasingly finding themselves shut out of open discourse online, having to either signal compliance with the left or risk being de-platformed on the most popular social media sites. Though the alt-right has borne the brunt of this so far, it is unlikely to stop there, as the contemporary left does not value discourse in the same way as their classical liberal predecessors. There are several proposed responses to this situation, but none of them are likely to effectively deal with the problem. Let us examine these to discover their shortcomings, then craft a novel response that is more likely to succeed.

The Mainstream Libertarian Response

In the mainstream libertarian view, the large size of Google, Facebook, Twitter, Apple, GoDaddy, Paypal, and others are astonishing success stories of free-market capitalism. They tend to view these technology companies as private businesses whose owners should be able to freely choose with whom they will associate or not associate. Indeed, many libertarians view ostracism as a nearly universal positive, working to reward preferred behavior while punishing dispreferred behavior. If these companies behave improperly, mainstream libertarians believe that the market will punish them by elevating an alternative to prominence.

Though ostracism on the basis of behavior is nothing new, the crowdsourcing power of the Internet has transformed it into a political weapon that can be used to ruin people unjustly. Moreover, it is capable of dividing an entire society along ideological lines. When reasoned discourse is shut down and unpopular viewpoints are suppressed by howling irrational cyber-mobs, those who are de-platformed are likely to have their internal victim narratives confirmed, radicalizing them further. This may serve as a precursor to a novel type of civil war, one which arises when the heated rhetoric that is naturally produced as a byproduct of democracy escalates into political violence and there is no peaceful outlet to reduce tensions before they consume the entire society.

In a free market, censorious behavior from the largest companies would be of little concern. As John Gilmore, co-founder of the Electronic Frontier Foundation, said, “The Internet interprets censorship as damage and routes around it.” But it is also true that those in positions of power view checks, balances, and competition as damage and seek to route around them. Technology giants accomplish this partly by lobbying governments to regulate their industries in a manner that they can capture, as any other large companies would. But they have another weapon which can be even more potent: they can use their platforms to keep their upstart competitors out of search results and application stores. This can keep their competitors from gaining the brand recognition necessary to build the user base to become successful social media platforms. This was less of a problem in the early days of social media when turnover of the most popular sites was higher, but the near-monopolies of the largest companies are no longer as vulnerable.

The Conservative/Alt-Right Responses

In the view increasingly expressed by conservatives and alt-rightists, the Internet is an essential aspect of life in the 21st century, and the technology companies that deny people access to the most popular social media platforms, domain hosting services, and payment processors are curtailing both the civil liberties and economic opportunities of those people. The largest technology companies are effective monopolies, in that these firms are the only sellers of products and services that have no close substitutes. In response, they call for the state to regulate these companies as public utilities, much as they do to providers of electricity, water, and natural gas. This line of thinking also leads to support among these people for net neutrality regulations. Some argue that government regulation is even more necessary in this case, as the network effects and first-mover advantages of the largest technology firms mean that a competitor cannot provide the same quality of service even if there are no significant barriers to entry into the business of creating social media platforms, search engines, and payment processors.

However, treating social media as a public utility is likely to cause more problems than it solves. When governments began regulating other industries, innovation in those industries slowed. The companies which were nearly monopolistic either remained so or became real monopolies, as competition became even more difficult. Freezing current troublesome companies in place as major players rather than allowing upstarts to displace them is an undesirable outcome. This is exacerbated by the fact that public utility regulations are just as vulnerable to regulatory capture as any other regulations. It is also strange to equate losing social media presence with losing access to goods and services like clean water or garbage disposal, as one can live a healthy life without access to social media. Furthermore, the cost of regulation is likely to be high, and the regulated businesses will pass this cost onto their customers.

A Radical Proposal

To summarize the above responses, the mainstream libertarian would do too little while the conservative or alt-rightist would do too much. What is needed is an approach that can stop the censorious technology giants from abusing the power they have accumulated without causing the innovation-stifling and monopoly-calcifying effects of government regulation. This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy. Fortunately, there is a simple and powerful solution which may be explained in a straightforward manner.

To begin, let us note that all of these technology giants are incorporated companies. A corporation is a legal fiction created by the state to shield business owners from full financial liability and ease the enforcement of laws upon those businesses. It is impossible to create a corporation without involving the state, as attempting to do so without registering the corporation with a government will have no effect. The closest one could come would be to negotiate recognition of a business entity with limited liability with each customer of that business, but this would not be identical to a state-recognized corporation in terms of its interaction with the state. Two results directly follow from this. First, registering a corporation amounts to participation in a government program. Second, state-recognized corporations are not truly private businesses, but public-private partnerships in which the state provides limited liability through its monopoly on courts and the private business fulfills its purpose, whatever it may be.

In order to participate in a government program, a person or other entity is supposed to be in compliance with government laws. In the United States, the highest law with which a state-recognized corporation should be in compliance for this purpose is the Constitution. The Constitution contains a number of provisions which are supposed to limit the conduct of government, including provisions to protect freedom of speech, freedom of the press, freedom of assembly, security against unreasonable search and seizure, and due process, among other rights. Because state-recognized corporations are public-private partnerships, they should be held to the same limitations on their conduct.

Thus, we arrive at an approach that meets the conditions described above. The technology giants that are currently engaging in censorious activities against viewpoints that they find disagreeable should be approached by the state and given two choices. Their first option is to begin respecting the aforementioned rights in accordance with the above argument and stop their censorious behavior. Their second option is to forfeit their corporate charters and right to do business as a corporation in the United States. This means that they would lose access to all government contracts, loans, and grants, could not be bailed out by taxpayers if their businesses falter, could not receive property taken through eminent domain, and the personal assets of everyone in the company would be available for paying civil damages. In other words, the leadership of the technology giants would have to choose whether to contribute to a more open marketplace of ideas or to become free-market businesses, either of which would be an improvement upon the current state of affairs. Even the hint that such a proposal is being considered by high-ranking federal officials would have the technology giants rushing to behave better, and could accomplish the same results as public utility regulation with far less threat to innovation.

Now let us apply the test described above,

“This approach should use state power in a manner which does not expand said power beyond its current size and scope, but will solve the problem with minimum malign interference in the economy.”

Currently, the federal government enforces anti-discrimination laws on bases other than those involving the people being de-platformed by the technology giants. This proposal implicitly adds the basis of political ideology to race, gender, age, sexual orientation, and other currently protected categories. While this may appear to be an increase in scope, it would actually work to level out some of the discrepancies caused by protecting only the aforementioned categories. In order to evade constitutional restrictions, the federal government typically uses carrots rather than sticks to gain compliance from state government and large corporations, in the form of only awarding federal funding to compliant entities. Here, strings attached to continued recognition of corporate charters takes the place of strings attached to funds, but the overall methodology is unchanged.

As for malign interference in the economy, the latter option may appear to be so, but it is not upon closer scrutiny. First, no rational person in a leadership position at a technology giant would choose it due to the enormous risks involved in running such a large business without the legal shield of a corporation. Second, if any technology giants did choose the latter option, the change of ending state-recognized corporations in favor of government independence and full responsibility would be a beneficial move toward a more free-market economy.

Objections

Such a novel and radical approach is certain to meet objections, so let us attempt to anticipate and deal with some likely criticisms. First, there is the potential for technology giants based in the United States to balk at this dilemma and respond by leaving the United States for more favorable conditions elsewhere. Though this may be extremely disruptive in the short term, it would remove the canopy that is blocking the sunlight needed by the seedlings that seek to grow and replace the technology giants. The end result would almost certainly be both a more open and a more free market in the long term. But this is an unlikely result, as they would not wish to lose such a large and wealthy customer base as the American people.

Second, such a move would certainly be challenged in court, and the Supreme Court may see fit to rule against it. If this happens, then nothing will be lost and awareness of the need to appoint justices who are more friendly to the anti-censorship cause will be raised. It would also provide a strong President with a chance to ignore the Supreme Court and force the issue, especially if public opinion is against the side of the technology giants. The dominance of the judiciary in the American system is a longstanding problem, and any opportunity to challenge its power is a welcome development.

Third, there is the claim that this proposal is more about open markets than free markets. This claim is not without merit, but the current market conditions are neither open nor free. Working toward free markets is the primary economic objective of libertarian philosophy, but in the meantime, an open unfree market is superior to a closed unfree market. It is important not to fall into the trap of political autism by doing nothing until an ideal libertarian textbook solution hopefully comes along, which may not happen.

Finally, one may wonder why the issue cannot be left up to the market. In the long term, the market is essential for solving the problem posed by the technology giants. But although this is necessary, it is not sufficient for dealing with the immediate problem at hand. Through their current market share and their abuse of the power that said market share provides them, the technology giants are making the market unfree. Like it or not, the state is the weapon currently in play, and unless it is going to be eliminated in the near future, its power will either be used to favor the established companies or their upstart competition.

Conclusion

The technology giants have managed to acquire an unprecedented amount of power over the lives of people all over the world. As Frank Herbert observed, “Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.” If the leadership of these companies decide that they wish to silence someone and ruin their finances for whatever reason, it is within their capabilities to do so. Some may cheer because such a fate is currently befalling the alt-right. But what they do to Christopher Cantwell and The Daily Stormer today, they can and will do to anyone they dislike in the near future. Unless the technology giants are reined in, they will provoke the state into regulating their industries as public utilities, which will set back innovation by decades. The mere threat of the above proposal is capable of not only stopping their censorious behavior, but of opening the markets enough for private competitors to free them.

Book Review: The Science Of Selling

The Science of Selling is a book about how science can improve the field of sales by American sales trainer David Hoffeld. The book explains what research in psychology says about each aspect of the sales process, as well as how to sell in accordance with how the brain makes buying decisions. The book is divided into ten chapters, which comprise three sections that focus on different aspects of the business of sales.

Hoffeld begins by discussing some of his background and what made him decide to use science to improve his sales performance. He then explains why sales is not an obsolete profession and why science works to improve sales performance. The remainder of the introduction lays out the framework of the rest of the book.

The first chapter explores why salespeople are struggling. The suggested remedy is to adjust sales techniques to conform to the manner in which the human brain makes buying decisions. The second chapter covers the functionality of influence. The peripheral route is explained first, in terms of building trust and understanding the heuristics that most people use when making decisions. The central route is explained next, which involves the actual message of the salesperson. What this message should contain is the primary focus of the third chapter. Hoffeld uses a proprietary method called the Six Whys combined with attending to the buyer’s emotional state in order to address a buyer’s questions and get the buyer to feel like buying. These questions allow a salesperson to understand a buyer’s needs and convince a buyer to purchase a good or service now from a particular company. The fourth chapter focuses on the role of emotions in decision making and how salespeople can alter a buyer’s emotional state away from negativity.

The second section, composed of the next five chapters, begins with a study of questions. Many types of questions are analyzed, along with their role in the course of securing a sale. These are used to gain a basic understanding of a subject, then prompt potential buyers to think through an idea, then get potential buyers to disclose their dominant motives. The sixth chapter delves into primary buying motivators to explain why buyers buy from particular providers, then turns to buying requirements. Advice for dealing with decision makers and those who influence them come next, followed by how to learn a buyer’s decision criteria concerning what they need, how soon they need it, and how much they can pay for it.

Hoffeld deals with value creation and countering obstacles to making a sale in the seventh chapter. He uses social exchange theory to explain how a salesperson can help buyers to see value in the product being sold. Next, inoculation theory as a means of neutralizing competitors is discussed. After this, Hoffeld returns to the Six Whys and positive emotional states when considering how to address objections. In the eighth chapter, Hoffeld shares his approach to closing a deal. The Six Whys factor in again, as he views the close as a commitment that follows from a series of commitments throughout the sales process. This is supported by evidence from psychology that shows the power of the desire to be consistent. The use of trial closes to guide buyers into making a decision to purchase are covered next. Hoffeld suggests handling non-commitments by addressing objections and reinforcing the commitments that the potential customer has already made. With that done, the only thing left to do is to make a closing statement or ask a closing question to finish a deal.

The ninth chapter is about the design of sales presentations. The experiment Hoffeld mentions with jam selections in a grocery store to show that more choices can reduce sales is illuminating in the field of sales and far beyond. The strategies of setting anchors that portray one’s product as superior to an alternative, activating a customer’s mirror neurons by exhibiting their body language, using visuals instead of words only, and the use of stories and testimonials are recommended for effective sales presentations.

Hoffeld closes with a final section/chapter concerning the future of sales and what changes he believes will occur in the coming years. The prediction that a scientific approach will take over an anecdotal approach almost has to be correct, as all of the incentives mandate it. This necessarily validates his second prediction, that sales research will blossom. The final prediction that sales hiring practices will improve is probably true, but likely to take longer.

The Science of Selling is an excellent resource for salespeople, as the strategies therein are more effective than the trial-and-error and guesswork that is commonly practiced today. However, I must admit to reading this book at three levels in addition to face value: how a jobseeker may sell oneself to employers, how a philosopher may persuade the public of one’s ideas, and how a political activist may succeed in advancing one’s agendas. At the jobseeker level, this book explains why certain people fail to get job interviews and/or fail in job interviews. At the philosopher and political activist levels, this book explains why certain people are unpersuasive, why certain political systems are constructed as they are, and why logical fallacies seem to work in the real world. Thus, this book is useful not only to its intended audience, but far beyond it as well.

Rating: 5/5

A Perversion Of Service

Every year on Memorial Day, people visit cemeteries and go to parades in honor of those who died while serving in a government military. Those still serving in these militaries travel down roads normally reserved for civilian use, and the people that these military personnel ultimately oppress celebrate this fact. Meanwhile, politicians and the establishment press take the opportunity that a day devoted to deceased military personnel presents to promote statist propaganda concerning the nature of service and the provision of defense. The general structure of their propaganda narrative is as follows:

  1. We have freedom.
  2. Freedom and the rights associated with it are granted by the Constitution, the state, etc.
  3. Freedom is not free. This is because it is valuable, and valuables will be stolen by thieves and destroyed by conquerors if they are not defended.
  4. The state provides defense of freedom, and is the only means by which such defense can be provided.
  5. A society should revere its protectors, for they perform the functions that allow everyone else to do what they do in peace.
  6. Because of (4), government military personnel are those protectors.
  7. Because of (4), (5), and (6), people should revere the state in general and its military personnel in particular.
  8. Laying down one’s life to protect others is the highest cost that one can pay.
  9. Because of (4), (5), (6), and (8), those who die in military service should receive the highest honor.

Of course, like any effective propaganda, this narrative is a mixture of lies and truth. After all, a complete lie is easy to spot, while a lie wrapped in truth that has gone unchallenged by empirical examples for centuries is well camouflaged. The best way to counter this narrative is to challenge it on a point-by-point basis, examining each aspect and the connections between them for logical fallacies. Let us do this now.

Freedom

First, the statist asserts that we have freedom. Attempts to define freedom are rarely made by those who invoke it in this sense, for to do so would undermine their case irrevocably. However, we may proceed with the dictionary definitions of “the absence of necessity, coercion, or constraint in choice or action,” “the power or right to act, speak, or think as one wants,” “absence of subjection to foreign domination or despotic government,” and “the state of not being imprisoned or enslaved.” In the presence of the state, none of these are possible. The state is a group of people who exercise a monopoly on initiatory force within a geographical area. When people initiate the use of force, they are imposing necessity, coercion, and constraint in choice or action upon their victims. The laws that government agents create and enforce infringe upon the right to act, speak, or think as one wants by punishing behaviors which do not aggress against any person or property. Though the state does occasionally prevent foreign domination, it does this with less efficiency and effectiveness than could private defense forces, and states tend to become more despotic over time. The state imprisons and enslaves millions of people. Those who are left somewhat free are not in such a condition for their own benefit and flourishing, but because it produces superior results from the perspective of human livestock management. That we cannot have freedom under current conditions puts the entire narrative in jeopardy, but let us continue our examination.

Rights

The claim that rights are either a grant from a government or are protected by a government is the second step in the narrative. Leftists favor the former position and rightists favor the latter, but both can easily be shown to be in error. A right is defined as “something to which one has a just claim,” “a moral or legal entitlement to have or do something,” and “the sovereignty to act without the permission of others.” Whether or not a claim is just is independent of whether a government is present. Statists may contend that the absence of government means that there is no final arbiter of the justness of a claim, but there is no such thing as a final arbiter of disputes. Regardless, the truth value of a claim is independent of whether anyone recognizes its truth value, or even whether anyone exists to recognize its truth value. A moral entitlement to have or do something must be argued from first principles; it cannot be granted by a government. A legal entitlement may be granted by a government, but only because a government has forcefully suppressed any competing providers of law and order within its claimed territory. A state apparatus, by its very nature, infringes upon the sovereignty of its subjects to act without its permission through its legislation and enforcement mechanisms.

Moreover, the belief that rights must involve the state occurs because the state has corrupted the meaning of rights. Rights are supposed to be exercised through one’s own action without conferring any positive obligation onto someone else, but statists use the word to refer to a claim upon someone else’s life, property, and/or labor. These so-called “positive rights” are invalid because the state violates the negative rights of other people who are forced to provide for these positive rights.

Loss Prevention

That freedom is valuable, and thus vulnerable to destruction and theft if left undefended is true. But there is a non sequitur fallacy between this step and the belief that the state is necessary for the provision of such defense. In fact, the truth is just the opposite. Besides being the primary culprit behind the destruction of freedom, the state cannot possibly provide for the defense of freedom. As a compulsory monopolist of protection, the state charges what it wishes and uses force to prevent anyone from hiring a competing provider, going into business for oneself, or doing without. A threatening protector is a contradiction of terms, which in any context not involving the state would be appropriately recognized as a protection racket. Again, whatever benefit the state provides is done not to serve the people, but to serve itself. To whatever extent the state enjoys defense, its subjects are imperiled, for whatever means of defense the state has constitute potential means of offense against the people.

Reverence

That a society should revere its protectors is true. The problem comes with the belief that government personnel are the protectors of society. As shown previously, the state cannot provide defense for the people because it is a continuous threat against the people. Since the state is composed of people, it follows that those people cannot be responsible for defense in any absolute sense. They can only defend against other potential sources of exploitation so that the state may have a monopoly over the exploitation of the people. As such, reverence for the state in general and its military personnel in particular is misplaced unless it truly is the least of the evils. Fortunately, this is not the case.

Admittedly, there are no empirical examples of a free market of private military companies providing military defense services in lieu of a government military. A major reason for this is that governments will use as much force as necessary to keep such an idea from being tested, as its success would doom the state by depriving it of its most essential monopoly. Without a monopoly on military force, the state would cease to exist, as the response of the people to its taxes and laws would be to point military-grade weapons at its agents and tell them to stand down or be fired upon. That they are so fearful of such an attempt being successful indicates that even they believe it can work, and if anyone should have the deep knowledge necessary to make such an assessment at present, it should be them.

Without empirical examples, we must logically deduce our way through. The presence of a monopoly with involuntary customers necessarily leads to inferior quality of service and higher costs, as the monopolists need not provide superior quality of service and/or lower cost of service vis-à-vis a competitor. The opening of provision of military defense to a free market of competing service providers must therefore lead to an increase of efficiency, which in practice means superior quality of service and/or lower cost of service. There is no reason why the market should fail to provide a service that is strongly desired by everyone for everyone (except for a few criminals, who want it for themselves but not for their victims), to the point that most people will tolerate the oppressions of statism just to obtain a counterfeit version of it.

The most common criticisms of competing private defense companies are that they will fight each other, that they will lead to rule by warlords, and that they will become a new monopoly on force. Rule by warlords and monopoly on force describe the situation under statism, so if the worst-case scenario is that eliminating government militaries just gets us another government military, all other cases must turn out better than this, making these into powerful arguments in favor of privatizing military defense.

This leaves the concern that the private service providers will fight each other. We must recognize that the current service providers do fight each other, which caused roughly 100 million deaths in the 20th century. As such, the bar of service quality that private military defense providers must exceed is set quite low. Fortunately, private military defense providers would be limited in ways that government militaries are not. A private service provider must bear the cost of its own decisions, and engaging in aggressive wars is more expensive than defensive actions only. A company that sells war is thus at an economic disadvantage against a company that sells peace. Without the government monopoly on legal services granting immunity to private soldiers as it does to government soldiers, the private soldiers would be subject to the criminal punishments made prevalent by the private defense forces in the area in question in addition to vigilantism by individuals. The agencies that decide to fight also must take care not to damage or travel on ground held by customers of other agencies, as this would be considered trespassing, and a trespasser with an intent to murder others in a war is a trespasser who may be killed in self-defense. Thus one could expect to see every private property owner not involved with the warring agencies taking actions to destroy both sides of the conflict whenever they occupy land that is not owned by their customers. With no state to forbid ownership of certain types of weapons, the private property owners would be much more capable of stopping military hardware than they are now. There is no guarantee against such a fight, but there are enough incentives working against it to consider it a remote possibility.

Given the superiority of private defense markets compared to government militaries, the state is not the best option. Thus, we may put aside feelings of reverence for it and its military personnel.

Sacrifice and Honor

It is true that one’s life is the highest cost that one can pay, and that laying it down in defense of family and friends is the greatest sacrificial love that one can display. It does not follow that those who die while serving in a government military have done this. Many people volunteer for military service because they believe that this is what they are volunteering to do. Unfortunately, despite their best intentions, this is not the true nature of their actions. Contrary to statist propaganda, the state does not work for the people, for if this were the case, then the people would be free to fire the state, cease paying for it, and either hire someone else, go into business for themselves, or try to do without. Because the state does not work for the people or, as shown previously, provide defense for the people, those who die in its service are not due the honor of those who lay down their lives to defend others.

It must be said here that just because fallen members of a government military are not due honor, it does not mean that they are due dishonor. Like most other people, they are propagandized to the point of saturation by government schools, churches, establishment media programming, and recruitment advertising. Recruitment personnel then do their best to sell them the military life while making light of the arguments discussed here, if they even acknowledge them at all. The majority of people in a government military are not intentionally evil, but are victims of fraud and lies. The proper response, then, is to attempt to educate living military personnel and those who would follow in their footsteps rather than to engage in displays of disrespect toward the dead (or, for that matter, toward the living).

Conclusion

The desire to protect and serve others is commendable, but a government military offers only a perversion of service. Authentic service of others must be accomplished not through a top-down, coercive, centralized, territorial monopolist like the state, but through the bottom-up, voluntary, decentralized, competition of the market economy. While the state makes defense impossible for its subjects in an absolute sense, there is every reason to believe that private service providers can accomplish this critical task.

Self-defense is one of the most fundamental rights, and the most important personal responsibility, as the abdication of this responsibility endangers all other rights and responsibilities. Of course, there is nothing immoral about hiring help for such a basic need, but the decay of the role of the militia in society has created a vacuum that has been filled by government militaries. The troops are ultimately in the position they are in because too few of us do what is necessary to provide for our own defense and counter statist propaganda. It is therefore because of the selfishness (in the form of risk aversion with respect to confronting aggressors) and irresponsibility of most of the people in the modern West that soldiers are joining government militaries and sacrificing their lives at the behest of politicians in the first place. Until the people right themselves, true defense and service will remain unknown to us.

Fashion As A Harbinger Of Revolution

There are many barometers for the health of a society, from economic prosperity to beliefs concerning social issues. One such barometer may be found in the fashion that is being promoted in that culture. The advocacy of modest clothing in good condition indicates a healthy society. Clothing that is deliberately ill-fitting, whether wasteful in material or skimpy in coverage, is a sign of degeneracy. A new clothing trend has developed in America that is symptomatic of the sort of cultural decay that foreshadows a revolution; that of clothing that is designed to mimic the appearance of wear and work for those who think themselves above the sorts of activities that would produce these effects naturally.

Current Examples

There are many instances of this, but four examples will serve to illustrate the point. First, let us consider Nordstrom’s Barracuda Straight Leg Jeans. The product description calls them “Heavily distressed medium-blue denim jeans in a comfortable straight-leg fit embody rugged, Americana workwear that’s seen some hard-working action with a crackled, caked-on muddy coating that shows you’re not afraid to get down and dirty.” These pants, available for $425, have fake mud and wear marks added to them. (They must be machine washed cold, lest these dubious decorations break off and leave one with an improved pair of pants.)

Another offering, the Damiana Splatter Paint Stretch Woven Jogger Pants, are described as “Slouchy, tapered-fit joggers crafted from extremely durable, destroyed stretch cotton appear as though they stepped straight out of the art studio, creating a disheveled style masterpiece that’s both one-of-a-kind and unafraid to play dirty.“ For $300, you can avoid the excruciating work of wielding a paintbrush and wear pants with fake paint splatters on them in order to pose as an artist or painter.

Third, there are the Maison Margiela Future Destroyed High Top Sneakers available at Neiman Marcus. The non-destroyed version is available for $995, but for the low, low price of $1425, you can have a pair that looks like they went through a car crusher. Multiple gashes, a mostly missing tongue, and inner layers hanging out are marketed as “deconstruction” and “heavy distressing.” As of this writing, they are on sale for $997, so perhaps there is hope in the fact that too few people were willing to pay so much more for an inferior product.

Finally, the fashion of intentional damage is not reserved for men only. Golden Goose offers women a multitude of sneaker designs, and one of them is designed to look like it has been through hundreds of miles of use. Scuff marks abound and the leather is crackled to simulate wear, though it looks more like it is covered in two paints which are incompatible. The $425 price tag is comparable to other offerings which do not always look new, but are not designed to look worn out.

Why It Matters

Some people may wonder why this is important. Why focus on fashion when there are so many greater problems in the world? It is true that fashion is a non-issue in and of itself when compared with the primary problems facing humanity. However, the concern is not with fashion in and of itself, but with what fashion says about the people who create, market, sell, and wear it. Moreover, there are fashion trends which indicate cultural trends, which in turn can serve as an early warning signal that the present system of governance has its days numbered.

Worse, some libertarians and conservatives might wonder why such fashions should not be celebrated. Is this not an instance of the market meeting a demand and freeing people from menial tasks to engage in other, greater labors? This view is misguided because the issue is not primarily one of economics, but of cultural attitudes concerning economic matters. A healthy culture has a strong correlation with liberty. A healthy culture celebrates work; an unhealthy culture mocks it and tries to avoid it whenever possible. A healthy culture values authenticity and living life; an unhealthy culture seeks a hollow and vicarious existence. A healthy culture venerates the ideal; an unhealthy culture worships the idol. The market is fundamentally amoral; its participants meet consumer demand as best they can in order to make profits. If that demand is degenerate in nature, then the goods and services produced will be as well. In other words, garbage in, garbage out. It is also worth noting that freeing people from having to wear a clothing item repeatedly and perform various activities in it so as to produce wear and tear naturally does not provide the increased utility that comes from labor-saving machines. One must still wear clothes to comply with societal norms, whereas one need not keep using older methods of performing tasks.

Mocking The Masses

The four products discussed above are designed to create the illusion of work. The prices of hundreds of dollars per pair of pants or shoes puts them outside the budget of most people who make a living in a trade that involves getting mud or paint on themselves. The end result is a class of products made for wealthier people that let them impersonate the masses beneath them while remaining oblivious as to why those who really engage in such dirty jobs might be angered. If this were done affectionately, then it might not be so bad, as imitation can be the sincerest form of flattery. However, the implications are more of mockery.

The idea of the wealthy imitating the poor for fun is nothing new. A famous example is the Petit Hameau, a mock farm area built in the gardens of the Petit Trianon in 1783 for Marie Antoinette. While visiting this area, Marie Antoinette and her attendants would wear dresses of simple gauze tied with satin ribbons and pretend to care for farm animals. The farmhouse interior, of course, was fully equipped with the luxuries expected by royalty of the time. The Petit Hameau was a reflection of France’s culture and moral values, but its artificial nature and lack of necessity made it a mockery of the daily grind of many French people. The exorbitant cost of her amusements did not help her case with critics of the ancien regime, and the public sentiment stemming from her lavish expenditures contributed to her execution by guillotine in 1793.

Though we are probably far from the masses shedding the blood of their economic betters and using their obliviousness and mockery as a pretext, there is no a priori reason why circumstances in America cannot eventually deteriorate to that point. After all, Marie Antoinette likely had no conception of her eventual fate back in 1783. Even if those who wear the items discussed above never meet a nasty demise at the hands of an angry proletariat, the sort of mockery once conducted by Marie Antoinette and now conducted by certain fashion designers and their customers indicates the sort of cultural illness that prefigures a mass uprising.

Inauthenticity

That there is a demand for clothes that come purposefully damaged and covered in fake signs of use says that people have not only lost the sense of dignity that comes from a hard day’s work, but have lost respect for that sense of dignity as well. Instead, a significant number of people prefer the illusion of effort, believe that physical labor is beneath them, and see nothing wrong with taking credit for another’s work. The illusion of effort is troublesome because it can lead people to prefer laziness over diligence. Should this sentiment become widespread, important work will go undone and the infrastructure necessary for civilization will decay.

This leads into the second problem, the sense that physical labor is somehow undignified. For the wealthy, physical labors can be hired out to others. For the intelligent, there is more money to be made in fields which are only accessible to them. But for many people, physical labor is their method for doing honest work for honest wages so that they do not have to live parasitically at another’s expense. It is no shame to work in a blue-collar profession; some people just have more lucrative options. The proper response from elites, then, is not to sneer at blue-collar workers but to be thankful for and respectful of them. The alternative response leads to a widening cultural gap and greater alienation between rich and poor, which cannot continue forever.

This, in turn, leads to the third concern, that of taking credit for another person’s work. By wearing clothes which show the signs of work that one has not only not done, but has paid someone else to create the illusion of having done, this is the effective signal that one is sending. The state is partly to blame for this, as its intellectual monopoly laws have come to serve as the basis for enforcing norms of giving credit where it is due. But such laws attempt to apply the norms of property ownership to that which is not scarce, is not rivalrous, and has no particular form in physical reality. As people realize the nonsensical nature of patents and copyrights, they tend to throw the baby out with the bathwater and come to reject all notions of giving credit where it is due. This undermines the respect between persons that is necessary for a stable social order.

Inverted Class Incentives

In a healthy society, those who are on the lower rungs of the economic latter seek to imitate the appearance and emulate the virtues of those near the top, so as to engage in the behaviors that allowed those who are near the top to climb up there. Conversely, the clothing items discussed above serve as evidence that the opposite is occurring. Those near the top have been made to feel guilty about their station in life by social justice warriors who condemn them as being ‘privileged’ and tell them to check themselves. While these fashions are primarily, in the words of Mike Rowe, “a costume for wealthy people who see work as ironic rather than iconic,” the shaming of wealth has led many affluent people to signal lower economic status in order to avoid harassment by the moral busybodies of the progressive left. Wearing such clothes is one means of doing this. Thus, we have high imitating low, and if this goes on with sufficient magnitude for enough time, it will lead the rich to poverty while leaving the poor without a good example to follow.

Conclusion

Fashion may seem an innocent playground for leftist elites and detached from the harsh realities of life in middle America, but it can serve as a warning signal that something is deeply wrong with the culture that produces it. The four clothing items discussed above indicate many problems which, if left untreated, will lead to a revolution. These problems have been present for decades, and may persist for a decade or two longer before they provoke an uprising, but that which cannot continue will eventually stop.

Strategy Against Antifa: 2nd Edition

Three months ago, I released a list of eighteen tactics that could be used to defeat the communist terror group known as Antifa. Several confrontations between Antifa and anti-communist activists have occurred since the list was published, and there are lessons to be learned from each case. Some of the suggestions in the list have been implemented to excellent effect, while others have gone unused. Predictably, those which involve private citizens tend to be in the former group while those that exclusively involve the state tend to be in the latter group. This should make clear that the deep state does not mind Antifa at best and is in league with them at worst. Ideas which were not on the list have also been responsible for success against Antifa. As any empirical hypothesis is subject to revision as a result of new theories and empirical evidence, let us do this now in order to create a second edition of strategy against Antifa.

1. Stop giving in to their demands. When a behavior is rewarded, those who engage in that behavior will do so more frequently, and other people will emulate that behavior in search of their own reward. Because public universities and other speaking venues continue to kowtow to pressure, it is necessary to take both action against them and counter-action to Antifa. The state has yet to make the funding of taxpayer-supported institutions contingent on defying efforts to silence speech in such venues, so direct action is required. Alumni of these universities and customers of other venues should announce boycotts in order to deny them funding directly. When official events are cancelled, unofficial events should be held anyway in the same place or a nearby place, which is already being done to excellent effect. Finally, if the far-left is going to attempt to silence anyone they perceive as being rightist, then the far-right should respond in kind against anyone they perceive to be leftist. After all, turnabout is fair play.

2. Fight fire with fire. When a behavior is punished, those who engage in that behavior will do so less frequently, and other people will avoid emulating that behavior for fear of being punished themselves. Where Antifa members continue to assault people and destroy property, it is because they face far too little defensive violence in response to their aggression. Fortunately, this has changed in many places. The rank-and-file police do not typically wish to stand down, but are ordered to in many cases because their commanders are sympathetic to Antifa. The bright side of this is that it has encouraged right-wing citizens to take to the streets in order to defend against Antifa themselves. The formation of the Fraternal Order of Alt-Knights (FOAK) is a sign of progress on this point. This will build confidence in people to be more self-reliant for their security needs rather than dependent on the state. As predicted in the first edition, Antifa members have shown themselves to be physically weak and lacking in combat experience, needing superior numbers or weapons to win a skirmish.

3. Stop discouraging defensive violence. The maintenance of liberty requires the ability to bring overwhelming defensive violence to bear against aggressors. While some people in libertarian and right-wing circles are still decrying the use of force against Antifa, the victory at Berkeley and the stalemates at Berkeley, Pikeville, Ky. and New Orleans show that defensive violence as well as the possibility thereof is an effective deterrent.

4. Hire private security. Since the sucker punch against Richard Spencer on January 20 in Washington, DC, most high-profile libertarian and right-wing personalities have hired private security to protect them at protests and other speaking engagements. Though this has not completely stopped Antifa from assaulting people, no personnel who have had bodyguards have been successfully attacked. This turn of events should continue.

5. Go after members of Antifa by going after their employers. This is a favorite tactic of Antifa in particular and social justice warriors in general. They will accuse a person of racism, sexism, or some other form of bigotry, often with no regard for merit, then contact their employers to get them in trouble. Their intention is to shame employers into firing their political rivals, or to disrupt businesses that refuse to bow to their pressure. Because they routinely do this to people, they have no right to complain when it is done to them. This could be a useful measure when Antifa members can be identified and are found to have employment rather than to be living on government handouts, though it has not had much success thus far.

6. Parody their websites and other online presences. The first edition recommended hacking Antifa’s websites and other online presences. This has been done to some extent, but a more effective measure has emerged. There are now many parody websites and accounts that falsely represent themselves as Antifa while actually mocking them. The most effective aspect of this is that it can be nearly impossible to distinguish fake Antifa from real Antifa, and this needs to be weaponized in furtherance of the next tactic.

7. Infiltrate Antifa to gather intelligence and spread misinformation within. This is standard procedure for government agencies in taking down a criminal organization. The extent to which such operations are underway, if at all, are not publicly known. This needs to be done so that Antifa’s efforts can be blunted and its key personalities arrested. Additionally, Antifa can be baited into actions which will make them look more foolish than they already are, get them arrested, or both.

8. Call them what they are: rioters and terrorists, not protesters. The establishment media frequently refers to Antifa as protesters, regardless of their conduct. As Confucius said, “The beginning of wisdom is to call things by their proper names.” We must hold the lying press to account and correct the record whenever and wherever possible. Antifa are not mere protesters; they are rioters and terrorists. A few establishment media personalities are beginning to come around on this point, but much more work is needed.

9. Remove and/or punish police commanders who give stand-down orders against Antifa. For the state to monopolize law and order within its territory is a travesty. For it to monopolize these services and then refuse to provide them is far worse. Anyone who is in command of police officers who are supposed to defend the public against Antifa’s crimes and tells those officers to stand down is not only in dereliction of duty, but is actively aiding the enemy. These administrators must be removed, and ideally, subjected to criminal charges as well. A small amount of progress has been made on the conduct of police commanders, but only out of necessity on the part of said commanders. For instance, the reason that Berkeley police started enforcing bans on masks after the April 15 battle is probably that the mayor, who has ties to Antifa, did not want to see another battle lost by Antifa. Thus, the situation was de-escalated by the Berkeley police. Other police departments in less leftist communities did not wish to see similar street battles in their communities and took similar measures. No police commanders, mayors, or other such officials have yet been removed or punished, and it is necessary to push for this to happen.

10. Declare Antifa a domestic terrorist organization. The simplest definition of terrorism that covers all instances of it is that it is the use of violence, threats, fear, and intimidation against innocent people for the purpose of achieving political or social goals. Antifa operates by these methods, has various local chapters throughout the United States, and is organized, so the label of domestic terrorist organization clearly fits. This would allow for federal funding to be allocated specifically for combating Antifa, as well as the involvement of the Department of Homeland Security, the Joint Terrorism Task Force, and other such agencies. The Trump administration’s lethargy in taking this step may be attributed to deep state influence or to an unwillingness to anger the left to the extent that such a measure would.

11. Unmask Antifa members. Where this has been done, the result has been a nearly complete shutdown of Antifa terrorism. Where this has not been done, their violence has continued. It is important that this be done everywhere. Although investigators in 4chan’s /pol/ community have successfully identified Antifa members even though they were masked, such work could be made unnecessary by strict enforcement of mask bans. Mask bans have resulted in Antifa members being arrested for refusing to either leave protests or remove their masks, and this has effectively disrupted some of their activities. Furthermore, any anti-communists who can lay hands upon masked Antifa members should pull off their masks, record their faces, and expose their identities.

12. Charge rioters with felonies. This has already happened to many rioters from the presidential inauguration, but felony rioting charges against Antifa and similar groups need to become more widespread. Lengthy prison terms and hefty fines will discourage people from involvement with Antifa while sidelining current activists and confiscating funds which would otherwise be used by Antifa. Ideally, such fines would be payable into a fund that would reimburse private property owners for damages caused by Antifa members. Little has been done on this point since the first edition, which is unfortunate because it would impose costs that would scare off the average misguided youth in Antifa.

13-15. Charge anyone who aids Antifa in any way, freeze their funds, and send illegal aliens involved with them to Guantanamo Bay. Because Antifa has yet to be declared a terrorist organization, there has necessarily been no implementation of these measures. These measures must therefore be tabled unless and until action occurs on tactic #10.

16. Eliminate gun-free zones. The vast majority of Antifa activity has occurred in gun-free zones or places in which carrying rights are restricted to some degree. By eliminating gun-free zones, the state can ensure that more citizens are capable of defending themselves from aggressors like Antifa. This will also lessen the burden on government security forces. The peaceful nature of the demonstrations in Pikeville on April 29 showed the importance of this measure. The police presence between the two was credited for this in the establishment media, but the real reason for peace was that both Antifa and the alt-right showed up with firearms, resulting in peace through mutually assured destruction. Like most measures involving the state, almost no progress has been made on this front.

17. Privatize public property. An underlying problem of which the surge in left-wing political violence is a symptom is the existence of state-occupied property. No one truly owns such property because no person exercises exclusive control over it. This leaves it open not only to use by groups of people who are at cross purposes with each other, but to an occupation by one group for the purpose of denying access to another group. If all property were privately owned, then it would be clear that whenever Antifa attempt to shut down a venue by occupying the premises, they are trespassing. This would make physically removing them a less ambiguous matter. This is unlikely to occur in the near future, but many problems would be solved if it did.

18. Find more support staff. No group of warriors can succeed without support staff backing them up. There are networks of attorneys to help Antifa with their legal troubles, medics to tend to their injuries at rallies, volunteers and paid activists who harass employers and speaking venues. Anti-communists are currently at a disadvantage in all of these categories. It is thus necessary to organize and recruit people to fill these roles in order to support activists in the field and undo the damage done by those who threaten employers and speaking venues on behalf of Antifa.

19. Get more funding. Everything that is worth doing in the world requires capital, even for enemies of liberty who reject capitalism. Antifa has funding from wealthy donors who support their causes, along with grassroots crowdfunding. Anti-communist efforts are relatively weak in this department, so it is necessary to both increase crowdfunding efforts and seek out libertarian and/or right-wing billionaire patrons who can see the danger that communist rioters pose to their well-being.

20. Above all, stop trying to be better than the enemy and focus on defeating the enemy. There is no need to alter strategy, virtue signal, or make any other effort to be better than Antifa. That they are violent criminals and we seek to defend against them means that we already are better than them. Let us do what is necessary to defeat Antifa, as detailed in the previous measures, and leave worries about improving ourselves until after this is done. Remember, this is a war, and in war, nothing is more honorable than victory.

On the Supply Objection to the Gold Standard

Since the gold standard was abandoned in 1971, many people have sought to return to such a standard in order to combat inflation and rein in central banks. Keynesians and others who support fiat currency and central banking present several criticisms of this approach. One of these criticisms is particularly nonsensical, but occurs with increasing frequency: that there is not enough gold in the world to back the quantity of currency in existence, and thus returning to gold would set off a deflationary spiral while destroying several industries that depend on gold. Let us address this question from a scientific standpoint, return to economic matters, and address the claimed effects.

Physical Limits

Let us begin by finding the absolute limit of what gold can do for a monetary system. As the United States dollar is the world reserve currency at the time of this writing, it makes sense to use it as the currency to peg to gold. The smallest unit of gold is the atom, and the smallest unit of dollars is the penny. The most extreme possible case would be to set one penny equal to one atom of gold. What would this look like in practice? Any basic text on chemistry can lead us to the answer. The only stable isotope of gold is Au-197, and its molar mass is 196.967. This means that in about 197 grams of gold, or 6⅓ troy ounce coins of the type minted by many governments and private mints, there will be Avogadro’s constant of atoms, which is 6.022140857×10^23. Setting one penny equal to one atom of gold, this is $6.022×10^21 or $6.022 sextillion easily fitting in one’s hand.

This amount of money is so large that people cannot truly understand it due to the lack of a frame of reference for it. Few people will handle anything beyond millions of dollars at any point in their lives. Large businesses may deal with billions of dollars. The most powerful governments have budgets in the trillions of dollars. According to a History Channel documentary, the dollar value of the entire planet is in the quadrillions of dollars, checking in at $6,873,951,620,979,800, and subtracting Earth’s gold content leaves $6,862,465,304,321,880. As the limit of one penny per atom allows one to hold the current market value of a million Earths in one’s hand, it is clear that science imposes no physical limit to make a gold standard infeasible.

Another useful exercise is to try setting the value of all available gold equal to the value of the rest of the planet. The total available gold content at present amounts to 186,700 metric tons. Defining this amount of gold to be worth the above figure of $6,862,465,304,321,880 gives a gold price of $36,756.64 per gram or $1,143,259.40 per troy ounce. This is very expensive by current standards, but current standards do not come close to economizing the entire planet. The actual price would therefore be far lower than this, but this exercise is useful for setting an upper bound.

Current Prices

Perhaps critics of restoring sound money mean to say that the gold standard could not be reintroduced at current gold prices. In this, they are correct; at the time of this writing, gold trades at $1,284 per troy ounce. Multiplied by the 186,700 metric tons of gold available, this gives $7.707 trillion of gold-backed currency, which is not enough for the United States economy, let alone the entire world. The solution, then, is to devalue fiat currencies to fit the available gold supply. According to the CIA World Factbook, the gross world product in 2015 was $75.73 trillion. Covering this with the available gold gives a gold price of $12,616.75 per troy ounce, which is an order of magnitude above current prices, but not outlandish.

Possible Effects

Gold has gained several practical applications in recent times, particularly in medicine and technology. Critics claim that returning gold to monetary use would devastate these industries, along with the jewelry industry. In each case, critics are overreacting. Research toward creating substitutes which work nearly as well in electronics is promising. Gold salts in medicine have numerous side effects, monitoring requirements, limited efficacy, and very slow onset of action. Finally, there is no particular reason why we should care about an industry that produces impractical novelties to the extent of protecting it through fiat currency. It would be better to free up jewelers to do something more productive and helpful to others.

The other major criticism is that returning to a gold standard will cause a harmful episode of deflation. Paul Krugman writes,

“[W]hen people expect falling prices, they become less willing to spend, and in particular less willing to borrow. After all, when prices are falling, just sitting on cash becomes an investment with a positive real yield – Japanese bank deposits are a really good deal compared with those in America — and anyone considering borrowing, even for a productive investment, has to take account of the fact that the loan will have to repaid in dollars that are worth more than the dollars you borrowed.”

But those who are less willing to spend or borrow are necessarily more willing to save, which will allow them to spend more later or fund new businesses and investments. There is also the matter that one cannot hold out forever; one must eventually purchase goods and services. That the technology industry thrives despite producing the most deflationary goods shows that there is nothing harmful about this. It turns out that the value of using a current computer over the next year is worth more than holding out for a more powerful computer next year. It is also true that holding out for more food next month does not work if one cannot survive until then without food now. One may object that this would concentrate wealth in the hands of those who can hold out, but this is a feature rather than a bug because it redistributes resources to those who have been good stewards of resources.

Those who have already borrowed face a larger debt burden in a deflationary environment, and though creditors experience an equal gain, creditors are unlikely to increase their spending to offset the reduced spending of debtors. But again, this is a feature rather than a bug because it incentivizes saving over borrowing while pushing some debtors into default, thus punishing unwise lenders with loss of principal and unwise borrowers with bad credit ratings.

With falling prices, profits and wages usually have to fall as well. But profits are a function of prices and costs, which are also prices. This leaves profits largely unaffected on a percentage basis. Wages are prices as well, and the need to cut nominal wages in a deflationary environment could both incentivize firms to release their worst employees and provide pushback against minimum wage laws.

Finally, there is the belief that the sort of deflation that may be caused by returning to gold would cause a recession. But the above rebuttals deprive this problem of any mechanism by which it might occur. In fact, the empirical evidence suggests that deflation is linked to economic expansion, as occurred in the United States during the 19th century. The only period in which a correlation between deflation and depression does appear is the Great Depression (1929-34), and this may be linked to the central bank policies of the 1920s, which fraudulently inflated the money supply beyond the set gold exchange rates of the time.

Conclusion

While a free market in money would be the most desirable condition from a libertarian perspective, returning to a gold standard is a superior option to that of allowing fiat currency and central banking to continue as they are. The concerns about a lack of gold supply for returning to a gold standard are without merit, and the fears of deflation and devastation to industry are unfounded.

Book Review: Level Up Your Life

Level Up Your Life is a book about self-improvement and adventure by American entrepreneur, fitness instructor, publisher, and writer Steve Kamb. The book shows people how to define goals and use a game setup of experience points and levels to accomplish those goals while avoiding various pitfalls along the way. The book is divided into six sections, each of which contains three to five chapters.

Kamb begins with a brief introduction, describing several of his most interesting adventures as well as the life he led before deciding to change his life. He talks about the online community he founded about changing one’s life to be more active and adventurous, then invites the reader to join.

The first section begins by going into greater detail about Kamb’s own experiences and backstory than did the introduction. The middle is a warning about getting stuck in the research and planning stages of an adventure without ever actually going on the adventure. The final chapter of this section is an exhortation to stop waiting and thinking you cannot live the life you want to live.

Getting started on a hero’s journey is the subject of the second section. Kamb begins by laying out the basic story arc that almost all heroic characters follow. Next, he asks the reader to describe one’s normal life and then create the superhero alter-ego that one wishes to become. The following chapter presents several common excuses that people use to justify not living a more interesting life and rebuts each of them. The sixth chapter contains advice on dealing with people who offer discouragement and resistance to one’s ambitions. Kamb ends this section by explaining how game mechanics such as experience points and leveling can be used in real life to help one learn skills and achieve goals.

In the third section, Kamb discusses how to set up one’s Game of Life. He lays out the rules that his group uses, but one can create one’s own list. The ninth chapter gives examples of character classes from role-playing games and how they might translate into real-world skill sets. The point of the chapter is to describe one’s ideal leveled-up character. The next chapter explores various quests that one could pursue in order to get from one’s current state to one’s ideal state. Kamb ends this section by sharing how he used the methods from the previous two chapters in his own quest.

The fourth section begins with more discussion of experience points and levels, then proceeds to discuss the need to self-impose both positive and negative reinforcement in order to cultivate discipline. An excellent bit of advice is given here: rewarding yourself should take the form of something that will aid in one’s quest, not something immediately pleasurable that will hinder one’s efforts going forward. In the fourteenth chapter, Kamb explains the importance of willpower. He suggests altering one’s environment to make pursuing one’s goals require less willpower and working against those goals require more. Following this, the need to create flow and momentum in one’s life is explained. The section concludes with a chapter about team-building that describes the roles of mentor, peer, trainee, and wildcard. Finding people to fill each of these roles helps make a quest more productive and interesting.

The fifth section uses the examples of four well-known fictional characters and how they overcame adversity in their stories to discuss how to prepare the body and mind for any adventure, nurture an adventurous spirit, and make necessary sacrifices in pursuit of success. The stories of Bruce Wayne, Jason Bourne, Indiana Jones, and Katniss Everdeen contain a multitude of lessons, making this the longest section of the book.

In the last section, Kamb reminds the reader that tomorrow is not guaranteed and whatever is worth doing should be started now. He encourages those who have completed their personal quests to share their stories and knowledge so that less experienced people can learn from them. The final chapter encourages those who have done great deeds to avoid resting on their laurels and move on to another adventure. The book concludes with a list of resources, acknowledgments, and a repetition of the offer to join Kamb’s online community.

Level Up Your Life is one of the better self-help books out there, and the online community is an added bonus. The greatest criticisms of the book would be that it is too much of an advertisement for the online community, and that while it is excellent for someone who is enduring life but not enjoying it, it is far less useful for someone who already uses similar methods with great success in some areas of life but is held back by failures in other areas. Even so, Kamb has created a book that is worth reading (and a website worth visiting).

Rating: 4/5

A Case Against the Second Amendment

One of the most controversial parts of the United States Constitution is the Second Amendment, which reads:

“A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”

Unlike the previous entries in this series, this will not be an argument against the substance of the Second Amendment. Rather, this will be a case against both the exact language of the Second Amendment, its efficacy, and the effect of having it explicitly codified in the United States Constitution.

Language

Let us begin with the words themselves and how their meaning has changed over the centuries. This is a common problem for those who view the Constitution as a dead document, as well as a common exploit for those who view the Constitution as a living document that they can interpret to mean whatever they wish it to mean. In the eighteenth century, ‘well-regulated’ simply meant ‘functioning properly.’ But with the growth of the administrative state, regulation has taken on the novel meaning of law without proper legislation. Likewise, the concept of a militia has also changed from that of all able-bodied males of military age to that of fringe anti-government extremists, as the federal government has usurped the role of the militia and handed it to the National Guard, which it may more easily command and control.

Next, there is the matter of security of a free state. In one sense, ‘free state’ is a contradiction of terms because the presence of a state is a guarantee of an absence of freedom. In that sense, those who seek liberty should not want the state to be secure, but rather to be continually imperiled by its own subjects. But in the language of the time, a free state was one which was sovereign over its geographical area rather than one which was subject to another, more powerful state. In this sense, the Second Amendment is correct to observe that a heavily armed populace is the most effective deterrent against foreign invasion.

Efficacy

The Second Amendment concludes by saying quite plainly now as then that ‘the right of the people to keep and bear Arms, shall not be infringed.’ This is an absolute standard, setting a zero tolerance for infringement of the right to keep and bear arms. But how effective has this been? Given that the National Firearms Act of 1934 imposes taxes on certain categories of arms, the Atomic Energy Act of 1946 forbids private nuclear weapons, the Gun Control Act of 1968 mandates licensing of arms dealers and manufacturers, the Firearm Owners Protection Act of 1986 outlaws private ownership of machine guns manufactured after that date, and numerous other federal, state, and local measures further restrict what kinds of weapons one may own, it is clear that the Second Amendment is mere ink on a dead animal hide rather than an authentic protection of essential liberty against the whims of legislators.

Another concern with the Second Amendment is the same as with any other part of the Constitution. The interpretation is decided by judges who are paid by the state in courts which are monopolized by the state. Thus, the Second Amendment means whatever people in black costumes say it means, which need not be in keeping with common usage or dictionary definitions because there is no effective challenge to their power once the appeals process is exhausted. (There are the possibilities that a judge will be impeached and removed or that the Constitution will be amended, but these possibilities are rare enough to dismiss in most cases.) The incentive of people who are paid by the state is to encourage the health of the state, which in the case of the Second Amendment means that there is a conflict of interest between defending the rights of the people to keep and bear arms and eliminating the danger to agents of the state that an armed population presents. This incentivizes judges to rule in favor of restrictions on arms, which constitutes a threat to individual liberty and tends toward infringement upon natural rights.

That being said, the case law on the Second Amendment is somewhat more favorable than the legislation. In United States v. Lopez (1995), the Supreme Court struck down the Gun-Free School Zones Act of 1990. In District of Columbia v. Heller (2008), the court ruled that there is an individual right to keep and bear arms rather than solely a collective right. The McDonald v. Chicago (2010) decision extended Heller to the state and local level, while Caetano v. Massachusetts (2016) extended these decisions to all forms of bearable arms. However, other decisions leave much to be desired. In United States v. Cruikshank (1875), the court ruled that the Second Amendment “was not intended to limit the powers of the State governments in respect to their own citizens” and “has no other effect than to restrict the powers of the national government.” (McDonald v. Chicago largely reversed this decision.) The Presser v. Illinois (1886) decision found that states may prohibit their citizens from forming private military organizations, which protects the coercive monopoly of the state over military defense. In United States v. Miller (1939), the court found that the Second Amendment does not protect particular classes of weapons if they are not ordinary military equipment and legislators cannot imagine how the weapon could contribute to the common defense, thus hindering innovation in defense. The Lewis v. United States (1980) decision says that felons may be prohibited from possessing arms, which is troublesome due to the wide variety of peaceful activities that are considered felonious in the United States. United States v. Rybar (1996) affirmed that Congress may regulate possession of homemade machine guns, thus infringing upon the private property rights of citizens. Overall, the courts occasionally defend the right to keep and bear arms, but are generally unreliable, especially for more powerful weaponry.

To Codify Or Not To Codify

To quote Frederic Bastiat, “The worst thing that can happen to a good cause is, not to be skillfully attacked, but to be ineptly defended.” Perhaps the most damaging effect of the Second Amendment is ideological in nature; it encourages people to rely upon it as an argument for their rights instead of making a stronger case from first principles. This helps to perpetuate the erroneous beliefs that rights come from the state or from the Constitution, as opposed to the correct view that rights are logical corollaries of the most fundamental right, that of self-ownership. As soon as one accepts such a statist basis for one’s rights, those rights are instantly jeopardized, for what the state giveth, the state may taketh away. The implication at that point is that there would be nothing wrong with gun confiscation if the Second Amendment could be repealed or reinterpreted by a future Supreme Court packed with progressive liberals, which is the goal of many leftists in the United States. In other countries which do not have counterparts to the Second Amendment, the laws concerning keeping and bearing arms are much more strict and invasive. But in many places with strict gun control measures, a large number of people still maintain firearms; they just do so illegally. Note that when a product is in demand and legal markets are forbidden from providing the supply to meet the demand, illegal markets will step in and make the banned goods easier to obtain than if the goods were legal but strictly regulated.

Conclusion

The Second Amendment is excellent in aspiration, but thoroughly insufficient in practice. Both the legislative and judicial branches have infringed upon the right to keep and bear arms, in flagrant violation of the promise made by the Framers. It is thus necessary to make a stronger case for private armament on both the theoretical and practical fronts. Theoretically, the case for keeping and bearing arms should be made from the first principles of self-ownership and private property rights. Practically, those who seek liberty must recognize and make use of the fact that one effectively owns that which one can take and defend. Put plainly, the right to keep and bear arms is not secured by some magical parchment or by agents of the state, but by the ability and willingness of the owners of those arms to use them in self-defense against anyone who would attempt to take them.

Book Review: Come And Take It

Come And Take It is a book about 3D printing of firearms and the implications thereof by American entrepreneur Cody Wilson. The book details Wilson’s experiences over nine months in 2012-13 when he decided to leave law school and figure out how to use a 3D printer to make a functional plastic handgun. It also conveys his thoughts on political events of the time, such as the re-election of President Barack Obama and the Sandy Hook school shooting.

The story of Wilson’s entrepreneurship is not so different from many others; he must decide whether to make his venture be for-profit or non-profit, decide whether to work for the state or the people, figure out how and where to get funding for his operations, find the right people to work with, wrestle with the impulse to continue his schooling versus working on his entrepreneurial idea, and deal with legal challenges and roadblocks thrown his way by established interests. What sets it apart is the unique nature of his work.

Wilson’s story takes some interesting turns, such as trips to Europe and California where he meets with everyone from left-wing anarchists in the Occupy movement to a club of neoreactionaries led by Mencius Moldbug. This shows that the project to allow everyone to be armed regardless of government laws on the matter changes the political calculus across the entire spectrum, thus making him a person of interest to people of a wide range of political views.

The book is a valiant effort in creative writing and storytelling, but its subtitle of “The Gun Printer’s Guide to Thinking Free” is rather misplaced. It is not so much a guide for someone else to follow as an example which future entrepreneurs may study in order to adapt proper elements thereof for their own projects. The technical details that one might hope for in such a book are only partially present, though we may fault the US Department of State for that, as Wilson tried to include details of the production procedure for his plastic handgun but was forced to redact the material with large black blocks in the final chapter.

In a strange way, the book feels both long and short. Though it is just over 300 pages, it takes much less time to read than most books of that size. Come And Take It offers an interesting look into the mind and experiences of a true game-changer in the world of technology and self-defense, though the reader who is looking for thorough details on 3D printed weapons or a general manifesto on liberty must look elsewhere.

Rating: 3.5/5